Title
Report regarding a resolution approving purchase agreements for the furnishing of bulk process chemicals at the Water Quality Control Plant for fiscal year 2019-20; and authorizing the City Manager to execute the necessary agreements. (Brian Schumacker, Water Quality Control Plant Superintendent).
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RECOMMENDATION
Recommendation
Staff recommends that the City Council adopt a resolution approving the purchase agreements for the furnishing of bulk process chemicals for wastewater treatment for fiscal year 2019-20 and authorize the City Manager to execute the necessary agreements.
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BACKGROUND/DISCUSSION
Bulk quantities of chemicals are routinely used in a number of different processes to treat wastewater at the South San Francisco-San Bruno Water Quality Control Plant (WQCP). These bulk chemicals include disinfectants used to remove potential pathogens, coagulants used to remove solids, and chemicals used to neutralize chlorine during dechlorination. The City's practice is to procure these chemicals at the beginning of the fiscal year to establish guaranteed competitive prices for the entire fiscal year. Chemicals are delivered as needed to meet treatment demands.
The WQCP is a member of the Bay Area Chemical Consortium (BACC), along with over sixty participating public agencies. The BACC follows a public bid process for the combined purchase of bulk chemicals. Each member agency of the BACC receives a benefit of large quantity purchase pricing by combining the volume of their agency's chemical needs with the needs of the rest of the consortium. Due to the combined bid solicitations for these agencies, each individual agency is able to purchase the chemicals at a lower price than if each agency solicited bids separately. It is difficult to speculate as to the savings an agency receives by ongoing participation in the consortium; however, new members have generally reported a savings of up to 20 percent on chemical purchases after becoming a me...
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